Market Insights Financial Capital Raising Traditional Capital Raising

Venture Debt - Lebanon

Lebanon

Total Capital Raised in Lebanon's Venture Debt market market is expected to reach US$0.36m in 2024.
Traditional Venture Debt holds the dominant position in the market with a projected volume of US$0.36m in 2024.
When compared globally, the majority of Capital Raised will be generated the United States (US$22,410.0m in 2024).
In Lebanon, the Venture Debt market is gaining traction as startups seek alternative financing options amid economic challenges.

Key regions: Brazil, Germany, United Kingdom, Singapore, China

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Analyst Opinion

The Venture Debt market in Lebanon has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Lebanon have been shifting towards alternative financing options, such as venture debt, as traditional lending sources become more stringent in their criteria.

Startups and emerging businesses are increasingly looking for flexible financing solutions that can provide them with the necessary capital to fuel their growth without diluting their equity. Venture debt offers a viable alternative by providing startups with non-dilutive capital that can be used for expansion, working capital, or product development. In line with global trends, the Venture Debt market in Lebanon has been witnessing an increase in the number of venture capital-backed startups.

These startups often require additional capital to support their growth plans, and venture debt has emerged as a popular financing option. The availability of venture debt allows startups to leverage their existing equity investments and extend their runway, enabling them to reach key milestones and attract further funding. The local special circumstances in Lebanon have also contributed to the development of the Venture Debt market.

The country has a vibrant startup ecosystem with a growing number of innovative companies across various sectors, including technology, healthcare, and fintech. These startups are driving economic growth and job creation, and venture debt plays a crucial role in supporting their expansion plans. Additionally, Lebanon's relatively small market size and limited access to traditional financing options make venture debt an attractive choice for startups looking to raise capital.

Underlying macroeconomic factors have further fueled the growth of the Venture Debt market in Lebanon. The country has been facing economic challenges, including high unemployment rates and limited access to capital for businesses. Venture debt provides an alternative source of funding that can help stimulate economic growth by supporting startups and small businesses.

Furthermore, the low interest rate environment globally has made debt financing more affordable, making venture debt an attractive option for both investors and borrowers. In conclusion, the Venture Debt market in Lebanon is developing rapidly due to customer preferences for flexible financing options, global trends in venture capital-backed startups, local special circumstances in the country's startup ecosystem, and underlying macroeconomic factors. As the market continues to grow, venture debt is expected to play a crucial role in supporting the growth and expansion of startups in Lebanon.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.